A letter of intent regarding Metsä-Botnia's new ownership structure>
A letter of intent regarding Metsä-Botnia's new ownership structure
(Thomson Reuters ONE) - In the letter, Metsäliitto Cooperative will become the majorityshareholder of Metsä-BotniaMetsäliitto Group will focus even more clearly on selected corefunctions and strengthen its operations in them by signing a letterof intent regarding the divestment of its Uruguay-based function toUPM-Kymmene Oyj. In the same connection, it was agreed that UPM willreduce its ownership in Metsä-Botnia to approximately 17%, with themajority transferring to Metsäliitto.The Uruguay functions transaction included in the letter of intentinclude the majority shares of the Fray Bentos pulp mill and theForestal Oriental company, which specialises in eucalyptuscultivation. Metsäliitto will also divest its direct ownership of5.5% in Uruguay functions."The structural change work of Metsäliitto Group is progressing in adetermined manner. We will focus even more clearly on selected corefunctions and strengthen our operations in them. The Fray Bentos pulpmill produces eucalyptus pulp which is used as a raw material forfine paper. The divestment of the Graphic Papers business, completedat the end of last year, significantly decreased our need for thisraw material. For the paper business, we will continue the strategicreview," says Kari Jordan, President and CEO of Metsäliitto Group.Prior to the share transaction, Metsä-Botnia's shares of ownershipare as follows: Metsäliitto Cooperative 23%, M-real 30% and UPM 47%.As a result of the arrangement, Metsäliitto Cooperative will ownabout 53% of Metsä-Botnia, and M-real around 30% and UPM around 17%.The arrangement's net effect on cash flow for Metsäliitto will bearound EUR 100 million negative and it will increase the net debtaround EUR 150 million. As a result of the arrangement, M-real willreceive a cash payment of around EUR 300 million.In regard to their essential parts, the existing cooperationcontracts will remain valid as unchanged, even after the arrangementhas been carried out, and Metsä-Botnia will continue to act as asales channel for the market pulp of both UPM and M-real.Furthermore, it has been agreed in the letter of intent that 77% ofthe Pohjolan Voima Oy shares owned by Metsä-Botnia will be sold toUPM.Once the arrangement has been carried out, Metsä-Botnia will become asubsidiary of Metsäliitto, and Metsä-Botnia's sales will be entirelyconsolidated with the Group figures. The sales of Metsäliitto Groupare on a slight increase. The approximately 550 employees working inthe Uruguay functions will be transferred as part of the transactionas existing employees.The implementation of the arrangement requires the approval by bothparties' respective boards, signing of the actual contract, theconclusion of negotiations carried out with financiers, and theapproval by the competition authorities. The final transaction isestimated to become final during the last quarter of 2009.Together with UPM, Metsäliitto Group will arrange a press conferenceon the matter in Finnish today at 15:30 Finnish time in Scandic HotelSimonkenttä, at the address Simonkatu 9 Helsinki, meeting roomMansku. The arrangement will be introduced by Kari Jordan, Presidentand CEO of Metsäliitto Group; and Jussi Pesonen, President and CEO ofUPM.Further informationEsa Kaikkonen, General Counsel, Metsäliitto Group, tel. +358 10 4654749Anne-Mari Achrén, Group CCO, Metsäliitto Group, tel. +358 10 465 4541Metsäliitto Group's Pulp IndustryMetsä-Botnia is responsible for the pulp industry business ofMetsäliitto Group. Metsä-Botnia is a globally leading manufacturer ofchemical pulp, providing a wide range of products for its customerswho manufacture high-quality paper, packaging and tissue paperproducts. Metsä-Botnia aims to be the world's leading provider offibre, fibre-based properties and added-value services. In 2008,Metsä-Botnia had around 1,800 employees and its annual sales totalledalmost EUR 1.6 billion.Read more at www.botnia.comMetsä-Botnia in FinlandMetsä-Botnia's four Finland-based pulp mills are located in ÿänekoski(capacity 500 000 metric tons), Joutseno (650,000), Kemi (600,000)and Rauma (650,000). At full capacity, the mills annually produce atotal of 2.5 million metric tons of bleached softwood and hardwoodpulp. A significant part of the production is sold to ownercompanies' paper mills, and the rest are sold to the market, mainlyEuropean and Asian customers.Metsä-Botnia Svir TimberBesides the pulp mills, the business includes the Russia-based SvirTimber sawmill which produces annually around 200,000 m³ of softwoodsawn timber to meet the needs of planing mills, house factories, thebuilding and construction industry as well as supply chains.This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
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Datum: 15.07.2009 - 13:00 Uhr
Sprache: Deutsch
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